🎫Settlement System
Winner-Takes-All Mechanics
At market expiration, the oracle captures final asset price and compares to opening price:
Closing > Opening: LONG/YES wins entirely
Closing < Opening: SHORT/NO wins entirely
Closing = Opening: TIE—all stakes returned with no fees deducted
Important: Magnitude doesn't matter. A 0.1% increase and a 10% increase both result in LONG/YES winning completely. Only direction matters.
Beginner Mode: Winning pool receives 99% of losing pool (1% settlement fee), distributed by weighted stakes.
Standard Mode: Each winning share pays $0.99 ($1.00 minus 1% settlement fee). Each losing share pays $0.
Ties (Rare):
Beginner Mode: All participants receive original stakes back (entry fees not refunded since trades were executed)
Standard Mode: All shares expire at intrinsic value, collateral returned proportionally (trading fees not refunded)
Performance Calculations
Beginner Mode Settlement Formula
Step 1: Calculate Individual Performance
Performance % = (Closing Price - Your Entry Price) / Your Entry Price
This captures how much price movement you personally captured
Step 2: Calculate Weighted Stake
Weighted Stake = Your Net Stake × Performance %
Better entry timing = higher weighted stake
Step 3: Calculate Your Distribution
Your Share = Available Prize × (Your Weighted Stake / Total Weighted Stakes)
Available Prize = Losing Pool × 99%
Step 4: Calculate Total Return
Total Return = Your Share + Original Net Stake
You get back your original stake PLUS your portion of winnings
Standard Mode Settlement
Simple and direct:
Each winning share pays $0.99 ($1.00 minus 1% settlement fee)
Each losing share pays $0
No weighted calculations
Example Settlement:
User A bought 1,000 YES shares at 62¢:
Total cost: $620 + $1.55 fee = $621.55
If YES wins: Receives $1,000 gross
Settlement fee: $10 (1% of $1,000)
Net payout: $990
Profit: $990 - $621.55 = $368.45 (59.3% ROI)
User B bought 2,000 YES shares at 45¢:
Total cost: $900 + $2.25 fee = $902.25
If YES wins: Receives $2,000 gross
Settlement fee: $20 (1% of $2,000)
Net payout: $1,980
Profit: $1,980 - $902.25 = $1,077.75 (119.5% ROI)
User B achieved higher ROI by buying shares at lower price (45¢ vs 62¢), regardless of entry timing.
Fee Structure
Platform Fees:
Trading Fee: 0.25% on each transaction
Settlement Fee: 1% of winnings only (not deducted on losses or ties)
Beginner Mode:
0.25% deducted from stake on entry
1% settlement fee deducted from losing pool before distribution
Net effective cost: ~1.25% for losers, 0.25% for winners
Standard Mode:
0.25% fee on each trade (buy and sell)
1% settlement fee on gross winnings only
Net effective cost: 0.25%-0.5% in trading fees + 1% settlement fee on profits
No Fees on Ties: When closing price equals opening price, all stakes/shares are returned with no fees deducted.
Example Fee Calculation (Beginner Mode):
User enters $1,000 LONG position
Entry fee: $1,000 × 0.25% = $2.50
Net stake: $997.50
If loses: Loses $1,000 total (including entry fee)
If wins with SHORT pool at $32,000:
Settlement fee: $32,000 × 1% = $320
Available to winners: $31,680
Receive share of $31,680 + original $997.50
Example Fee Calculation (Standard Mode):
User buys 1,000 YES shares at 60¢ = $600
Trading fee: $600 × 0.25% = $1.50
Total cost: $601.50
If loses: Loses $601.50 total
If wins: Receives $1,000 gross
Settlement fee: $1,000 × 1% = $10
Net payout: $990
Profit: $990 - $601.50 = $388.50
No Hidden Fees:
No subscription costs
No withdrawal charges (except blockchain gas)
Transparent and enforced by smart contracts
All fees disclosed before transaction confirmation
5. Risk Management
User Protection
Position Limits (Beta Phase):
Minimum: $10 per market
Maximum: $10,000 per market
Prevents catastrophic losses while allowing meaningful participation
Limits may be adjusted post-beta based on platform maturity
Educational Requirements: New users must review mechanics before first trade, acknowledging understanding of:
Winner-takes-all outcomes
Entry-weighted distribution (Beginner Mode)
Share-based trading (Standard Mode)
Locked commitment (Beginner Mode)
Fee structure (0.25% trading, 1% settlement)
Different market timeframes
Beta position limits ($10-$10,000)
Diversification Monitoring: Platform alerts when taking concentrated exposure (e.g., multiple cryptocurrency hourly markets simultaneously). Doesn't prevent positions but ensures informed decisions.
Cooling-Off Periods: Suggested breaks after significant losses (3 consecutive losses in one day). Suggestion only, not restriction.
Slippage Warnings (Standard Mode): System displays estimated slippage for large market orders. Auto-suggests TWAP for orders over $5,000.
Timeframe Warnings: Platform highlights risk differences:
Hourly: High volatility, rapid price changes
Daily: Moderate volatility, overnight risk
Weekly: Lower volatility, multi-day trends
Monthly: Long-term commitment, significant capital lockup
Security and Integrity
Smart Contract Security:
Audited by leading blockchain security firms
Open-source code for community review
Multi-signature governance controls
Regular security audits and penetration testing
Active bug bounty program
Oracle Security:
Multiple independent data sources for each asset class
Cryptocurrencies: CoinMarketCap, CoinGecko, Binance, Coinbase price feeds
Stocks (Coming Soon): NYSE, NASDAQ real-time data feeds
Precious Metals (Coming Soon): COMEX, London Bullion Market
Billionaire Net Worth (Coming Soon): Forbes, Bloomberg indexes
NFTs (Coming Soon): OpenSea, Blur floor price aggregation
Cross-validation algorithms
Significant divergence triggers manual review
Dispute resolution process
Market Manipulation Prevention:
Suspicious pattern monitoring
Position limits constrain individual impact ($10-$10,000 beta limits)
Governance review for coordinated activities
Multiple timeframes make manipulation harder
Circuit Breakers:
Automatic pause for impossible data
Emergency procedures require governance approval
User funds remain secure during pauses
Separate controls for each timeframe
Fund Security:
Battle-tested smart contract patterns
Strict access controls
Segregated user funds
Protected during upgrades
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